When Modica co-founders, Eric and I met in business school, we were both working full time and taking night classes to earn our MBA. At the end of a very long day, we wanted to enjoy a craft cocktail at home, but we were too tired to make something from scratch and the mixers we found in the grocery stores were full of sugar, preservatives, and artificial ingredients.
We wanted an easier solution for better-tasting, better-for-you cocktails for everyone, no expertise required. Because some people are experts, like Eric, who has a decade of bartending experience, owns two bars, and infuses his own syrups. But some people are like me, who can barely squeeze a lime. And then we had a realization.
So many of the superfoods we love would make excellent cocktails! For three years, we experimented with ingredients until we found the perfect cocktail combinations. We said �yes!� to naturally sourced ingredients, antioxidants, and B-vitamins. And we passed on preservatives, tons of sugar, and anything artificial. We wanted a fantastic cocktail (or two), and they didn�t want to feel guilty about it afterward.
Despite the hurdles we faced in 2020, we're more excited than ever about the future. The year ahead of us is all about reconnecting with friends and family. People who haven't seen each other for months and months will be closing their Zoom apps (finally!) and coming together in person to celebrate. And what's better for celebrating than a pitcher of margaritas on the patio? Or an Old Fashioned around the fire pit? It's time for people to take a vacation, have a cocktail, and relax with their loved ones. And we want to be a part of that.
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Funded
A loan helped an LGBTQ-owned start-up grow our business at farmer's markets and events.
Jd's story
This loan is special because:
More about this loan
Business Description
Eric and I are the founders and co-owners of Modica, the world's first Superfood Cocktail Mix. Eric has ten years of experience in cocktails and mixology, while I have ten years in sales, account management, and customer service. We met while earning our MBA at the University of Louisville in 2016. We noticed all the cocktail mixers in the market were full of sugar, preservatives, and artificial ingredients. We wanted to create a better-for-you cocktail mix that anyone could use to create a craft superfood cocktail at home.
Using Eric's decade of professional bartending experience, we created a trio of cocktail mixers that use naturally sourced superfood ingredients, so they taste just as good as what you would get in a restaurant. We also use a blend of cane sugar and stevia so each serving has 35 or fewer calories. We don't use preservatives or artificial ingredients, and we fortify Modica with vitamins for an extra boost of wellbeing.
COVID-19 delayed our production by nearly a year, but we had our first production run in November 2020. We started selling Modica online that same month. Since then, Modica has been featured by local and national outlets. Modica is sold in over a dozen locally-owned businesses and we started working with a distributor in March 2021 to expand and grow Modica. This loan would help us hire part-time event staff and feature Modica at farmer's markets and other local events, in addition to supporting our next production run.
We feel passionate about Modica because we think everyone should have the opportunity to enjoy a delicious, craft cocktail or mocktail at the end of the day without feeling guilty about it. Modica brings people together and reunites friends and family after spending over a year apart from each other.
What is the purpose of this loan?
As a 100% LGBTQ-owned business, Eric and I are personally and professionally invested in working with other minority-owned businesses throughout Kentucky. Modica is a member of CIVITAS, the regional affiliate for the National LGBT Chamber of Commerce (NGLCC), and JD and Eric have also applied for NGLCC certification for Modica. As a small, locally-owned business, Eric and JD have planned to grow Modica�s presence in Louisville and Kentucky at diverse and small events, including LGBTQ Pride Events, farmers markets, and other cultural events.
We have already invested the capital necessary for Modica's formulation and the initial production run. As sales continue to grow, Modica will prepare for another production run at our co-packing facility. Since all raw goods must be purchased ahead of the production run, there are high start-up costs for a production run. Modica must also pay the co-packer�s tolling and production fees before the finished product is released to Modica and available for sale. This grant will help bridge the gap between production fees and sales from the new production.
The loan also provides funding for essential marketing and personnel costs. These funds would help us create a marketing video we can use broadly to grow Modica's brand recognition and awareness at both the local and national levels. Critically, the loan would also help us prepare for farmer's markets and local events by hiring part-time staff. These staff would be trained and fairly compensated to work alongside us at events. They would also be trained to help fulfill the online orders Modica receives, providing them with a consistent source of income.
Loan details
Loan length:
Repayment schedule
Monthly: One repayment made per month
End of term: One repayment made at the end of the loan term
Irregular: Any other repayment schedule
To see a detailed repayment schedule for a specific loan, click the "Repayment schedule" link on the loan profile under "Loan details."
What is the disbursed date?
In the case of partner loans, many of our Lending Partners choose to disburse loan funds before the loan request is posted on Kiva. We allow pre-disbursal because it ensures that the funds reach the borrower as soon as they are needed. Loan funds from Kiva lenders then go to backfill that amount and as a lender you assume the risk of the loan. By doing this, our Lending Partners assume the risk that, if the loan isn't funded by lenders, they will have to fund the loan without any funds from Kiva.
If a partner loan is not pre-disbursed, it will be listed on Kiva with an expected "post-disbursed" date. If a post-disbursed loan is not funded on Kiva, there is a chance that the borrower may not receive their loan. Some Lending Partners choose to disburse loans with other sources of funding, while other partners don't have the resources available to fund loans without Kiva lenders' support. No direct loans will be disbursed unless they fully fundraise on Kiva.
Funding model
What does "Partner covers currency loss" mean & how could it affect my Kiva loans?
Potential for currency exchange loss is noted on every loan profile under the loan details:
"Yes" means the Lending Partner will cover any currency loss. Lenders will not bear losses due to currency fluctuation
"Partial" means that the Lending Partner has opted to cover losses only up to 10%. If the U.S. dollar appreciates more than 10% against the local currency, those losses will be passed onto lenders.
"No" means that the Lending Partner is not covering any currency losses and all losses will be passed onto lenders.
"N/A" means the Lending Partner disburses loans to borrowers in USD so their loans are not subject to any currency fluctuation.
Do Kiva borrowers pay any interest on their loans?
Our partners collect interest from borrowers because there are many operational expenses associated with microfinance in developing markets, especially in rural areas. Many of Kiva's Lending Partners also provide additional services alongside their loan products such as business training, financial literacy lessons, or health services.
Kiva will not partner with an organization that charges unreasonable interest rates, and we require Lending Partners to fully disclose their rates. In addition, we only partner with microfinance institutions and organizations that have a social mission to serve the poor, unbanked, and underserved.
There are some 0% interest loans on Kiva, including all direct loans in the United States. To learn more about the interest rates Kiva borrowers pay, you can review the "Average cost to borrower" field on a loan profile.
We also encourage you to read the following articles if you are interested in further educating yourself on the topic: Microfinance 101 (https://www.kiva.org/microfinance), Top 10 things to know about microfinance (https://www.kiva.org/blog/top-10-things-to-know-about-microfinance), Microfinance interest rates explained (https://www.kiva.org/blog/whats-up-with-microfinance-interest-rates)
What is a risk rating?
The Lending Partner risk rating reflects the risk of institutional default associated with each of Kiva’s Lending Partners. A 0.5-star rating means the organization has a relatively higher risk of institutional default, while a 5-star rating indicates the organization is at a relatively lower risk of default, based on Kiva's analysis and the available information displayed in the Lending Partner section of every loan. Lending Partners with the lowest credit tier undergo a lighter level of due diligence and do not receive a risk rating; instead, in places where a risk rating would normally appear, these partners are labeled as “Experimental.” For more information, see "What is an Experimental Lending Partner?"
Direct loans also do not receive a formal risk rating. Instead, these loans are approved through “social underwriting”, where trustworthiness is determined by friends & family lending a portion of the loan request, or by a Kiva approved Trustee vouching for the borrower. Direct loans will appear as "Unrated" and lenders should always assume these loans represent the highest level of repayment risk on Kiva.
How are loans facilitated?
Kiva loans are facilitated through 2 models, partner and direct, that enable us to reach the greatest number of people around the world.
For partner loans, borrowers apply to a local Lending Partner, which manages the loan on the ground. Lending Partners are responsible for screening borrowers, disbursing loans, posting borrowers to the Kiva website for funding, collecting repayments and otherwise administering Kiva loans on the ground to borrowers.
For direct loans, borrowers apply through the Kiva website and may or may not be endorsed by a Trustee. Unlike Lending Partners, Trustees don't handle any financial transactions or have any duty to repay loans on behalf of their borrowers. Instead, Trustees take the role of providing support and business advice to their borrowers throughout the term of the loan.
More information about successive and concurrent loans
Most borrowers take out loans consecutively, meaning that they receive a second loan after having repaid the first. However, sometimes our Lending Partners give out concurrent loans, allowing borrowers to take out one primary loan and a secondary "add-on" loan along with it. These additional loans are typically smaller than the borrower's primary loan and serve a different purpose. We trust our partners to determine whether a borrower has the means to be able to repay a successive or concurrent loan.
About Modica Superfood Cocktail Mix
Lenders and lending teams
Country: United States
Trustee: Suzanne Bergmeister
What are Trustee tiers?
For for more information about Trustee tiers, visit: kivaushub.org/trustee-tiers
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Loan tags help lenders find loans that match certain areas of interest.
Loan details
Loan length:
Repayment schedule
Monthly: One repayment made per month
End of term: One repayment made at the end of the loan term
Irregular: Any other repayment schedule
To see a detailed repayment schedule for a specific loan, click the "Repayment schedule" link on the loan profile under "Loan details."
What is the disbursed date?
In the case of partner loans, many of our Lending Partners choose to disburse loan funds before the loan request is posted on Kiva. We allow pre-disbursal because it ensures that the funds reach the borrower as soon as they are needed. Loan funds from Kiva lenders then go to backfill that amount and as a lender you assume the risk of the loan. By doing this, our Lending Partners assume the risk that, if the loan isn't funded by lenders, they will have to fund the loan without any funds from Kiva.
If a partner loan is not pre-disbursed, it will be listed on Kiva with an expected "post-disbursed" date. If a post-disbursed loan is not funded on Kiva, there is a chance that the borrower may not receive their loan. Some Lending Partners choose to disburse loans with other sources of funding, while other partners don't have the resources available to fund loans without Kiva lenders' support. No direct loans will be disbursed unless they fully fundraise on Kiva.
Funding model
What does "Partner covers currency loss" mean & how could it affect my Kiva loans?
Potential for currency exchange loss is noted on every loan profile under the loan details:
"Yes" means the Lending Partner will cover any currency loss. Lenders will not bear losses due to currency fluctuation
"Partial" means that the Lending Partner has opted to cover losses only up to 10%. If the U.S. dollar appreciates more than 10% against the local currency, those losses will be passed onto lenders.
"No" means that the Lending Partner is not covering any currency losses and all losses will be passed onto lenders.
"N/A" means the Lending Partner disburses loans to borrowers in USD so their loans are not subject to any currency fluctuation.
Do Kiva borrowers pay any interest on their loans?
Our partners collect interest from borrowers because there are many operational expenses associated with microfinance in developing markets, especially in rural areas. Many of Kiva's Lending Partners also provide additional services alongside their loan products such as business training, financial literacy lessons, or health services.
Kiva will not partner with an organization that charges unreasonable interest rates, and we require Lending Partners to fully disclose their rates. In addition, we only partner with microfinance institutions and organizations that have a social mission to serve the poor, unbanked, and underserved.
There are some 0% interest loans on Kiva, including all direct loans in the United States. To learn more about the interest rates Kiva borrowers pay, you can review the "Average cost to borrower" field on a loan profile.
We also encourage you to read the following articles if you are interested in further educating yourself on the topic: Microfinance 101 (https://www.kiva.org/microfinance), Top 10 things to know about microfinance (https://www.kiva.org/blog/top-10-things-to-know-about-microfinance), Microfinance interest rates explained (https://www.kiva.org/blog/whats-up-with-microfinance-interest-rates)
What is a risk rating?
The Lending Partner risk rating reflects the risk of institutional default associated with each of Kiva’s Lending Partners. A 0.5-star rating means the organization has a relatively higher risk of institutional default, while a 5-star rating indicates the organization is at a relatively lower risk of default, based on Kiva's analysis and the available information displayed in the Lending Partner section of every loan. Lending Partners with the lowest credit tier undergo a lighter level of due diligence and do not receive a risk rating; instead, in places where a risk rating would normally appear, these partners are labeled as “Experimental.” For more information, see "What is an Experimental Lending Partner?"
Direct loans also do not receive a formal risk rating. Instead, these loans are approved through “social underwriting”, where trustworthiness is determined by friends & family lending a portion of the loan request, or by a Kiva approved Trustee vouching for the borrower. Direct loans will appear as "Unrated" and lenders should always assume these loans represent the highest level of repayment risk on Kiva.
How are loans facilitated?
Kiva loans are facilitated through 2 models, partner and direct, that enable us to reach the greatest number of people around the world.
For partner loans, borrowers apply to a local Lending Partner, which manages the loan on the ground. Lending Partners are responsible for screening borrowers, disbursing loans, posting borrowers to the Kiva website for funding, collecting repayments and otherwise administering Kiva loans on the ground to borrowers.
For direct loans, borrowers apply through the Kiva website and may or may not be endorsed by a Trustee. Unlike Lending Partners, Trustees don't handle any financial transactions or have any duty to repay loans on behalf of their borrowers. Instead, Trustees take the role of providing support and business advice to their borrowers throughout the term of the loan.
More information about successive and concurrent loans
Most borrowers take out loans consecutively, meaning that they receive a second loan after having repaid the first. However, sometimes our Lending Partners give out concurrent loans, allowing borrowers to take out one primary loan and a secondary "add-on" loan along with it. These additional loans are typically smaller than the borrower's primary loan and serve a different purpose. We trust our partners to determine whether a borrower has the means to be able to repay a successive or concurrent loan.
Trustee: Suzanne Bergmeister
What are Trustee tiers?
For for more information about Trustee tiers, visit: kivaushub.org/trustee-tiers
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